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BURNABY, BC – Former IWA Canada President Jack Munro has publicly joined the Canadian Labour Congress’ national campaign for an improved Canada Pension Plan. Appearing in a video (click to view) produced by the United Way of the Lower Mainland, following a recent presentation on pension income for seniors, the 80 year-old Munro says that it is encouraging that the House of Commons is talking about pension reform.

Munro said that “there’s problems developing (with the CPP) that we didn’t image would develop…” and that government is now responding because people are putting pressure on it.

Munro says the longer we wait for pension reform, the worse it will get.

“Somebody has to pay for pension reform,” says Munro, who added the time is now – less there be “terrible hardship” put on increasing numbers of seniors.

The CLC is calling for a doubling of CPP benefits and an increase to the Guaranteed Income Supplement by 15 per cent.

By 2030, as more baby boomers reach retirement age, over 30 per cent of Canadians will be over age 65. Seventy-five per cent of Canadians currently have no pension plan and many are seniors.

Already over 260,000 seniors live below the poverty line in Canada – a growing constituency as more seniors have seen their private pensions evaporate with the global economic crisis that started in 2008.

The CLC wants to see a seven-year plan that will see a 0.4 per cent rise in CPP premiums in each year. That will lead to a doubling of CPP benefits from a current rates to a top monthly benefit of $1878.00

Just 31 per cent of Canadians have RRSPs in any amount and only one-fifth of private sector workers have a pension plan. One-third of those in the private sector, who do have a plan, have a defined contribution plan, which does not guarantee any level of pension income.

“Canada can sure as hell afford to look after its seniors,” says Munro.

The CPP, first established by the minority federal Liberal government of Lester Pearson in 1965 (when they were pushed by the NDP), had assets of $122.7-billion, which dropped to $105.6 billion in 2009. It is estimated the fund will recuperate over 7 per cent of its value in the 2009-10 fiscal year.

In short, the CPP, which is administered by an independent investment board created in 1997, needs more funding.

Since most Canadians rely on public pensions and private savings to meet their retirement income needs, a healthy CPP will be even more important in the years ahead.

Under the leadership of Jack Layton, the federal NDP is also calling for a doubling of the CPP. The NDP is also calling for a Workers’ First bill that will protect private pension plans in the event of bankruptcies and closures. It is calling for a special fund to be set up to “adopt” broken plans under the administration of the independent CPP board.

The CPP, paid into by workers and employers, is Canada’s safest pension plan, which is portable between jobs and is mobile. No matter where you move or whom you work for, the public plan is accessible to all.

Says CLC President Ken Georgetti: “We’ve been telling politicians the best way to increase retirement security is to increase the CPP.”

Jim Flaherty, Prime Minister Stephen Harper’s Finance Minister, says he support the enhancement of retirement plans.

The Canadian Federation of Municipalities has called for the expansion of public pensions.

But so far the Conservatives have not taken firm action on the CPP. It held just three public consultation sessions in the spring and a series of private meeting with “stakeholders” not including the public.

In late June Flaherty announced some small steps to review regulations governing private pension plans. At the same time it announced it would spread solvency ratio tests over three years. The government is also limiting the amount that private plan managers can invest in real estate and resource sectors of the economy.